Question: What does this information suggest if Waterways cost structure is the same for the company as a whole? The section of Waterways that produces controllers

What does this information suggest if Waterways cost structure is the same for the company as a whole?

The section of Waterways that produces controllers for the company provided the following information.

Sales for month of February 4,000
Variable manufacturing cost per unit $9.75
Sales price per unit $42.50
Fixed manufacturing overhead cost (per month for controllers) $81,000
Variable selling and administrative expenses per unit $3.00
Fixed selling and administrative expenses (per month for controllers) $13,122

Contribution Margin Ratio

70

%
Degree of Operating Leverage

4.78

Break-even Point in Dollars

$134,460

Margin of Safety Ratio

20.9

%

What does this information suggest if Waterways cost structure is the same for the company as a whole?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!